Why Is the New Product Introduction Process Important?
The new product introduction process is very important for a myriad of reasons. Given the fact that companies need to up the ante in order to remain relevant in an increasingly competitive field, new product ideas need to become actualized in order to maintain current revenue streams.
Next, companies must perform market research in order to find out what the needs of their customers are and then try and come up with ideas for products that will meet the discerning needs of their targeted demographic.
As such, finding the best path of development is of the utmost importance, as resources are scarce, and time is of the essence. Here, we will delve into the new product introduction process and why it is so important for both new and established companies.
What is new product information and why is it important?
The new product introduction process consists of taking an idea from the working prototype phase to the final reproducible product stage. Given how much time, energy, and money is invested into transforming an initial idea or concept into a tangible product, prudent planning must be involved in every step in order to ensure that the final result will be worth the investment.
Ergo, if the company does not take the new product introduction process seriously then it can lead to poor reception by consumers, which will inevitably lead to subpar sales and a serious blow to the reputation of the enterprise in question.
Going from Conceptualization to Reality
Once the developers in question have established what the raison d’etre of their new IP will be, the refinement and modification stage will commence. Here, the product engineers will join forces with the sales, marketing, and business departments in order to establish what the new product specifications will be.
That is, the specifications that are clearly defined will need to adhere to the demands of their targeted clientele if the new product wants to have a good chance of being successful. Also, designers will begin to brainstorm in order to come up with a bevy of new concepts for the new product until a particular design route is determined to be the ideal solution.
Then, the new product introduction process undergoes further modifications and enhancements to the initial concept until all of the stakeholders unanimously concur that the design has matured to such an extent that a working prototype can be fabricated. At this point, many testable builds will be made, with each being refined by the design team.
Eventually, the continued dedication, modifications, refinements, and testing will lead to a final product that the company’s personnel can hopefully be proud of and confident enough to launch onto the market.
Reproducibility is a Must
As the product design is being finalized by the engineering department, the production planner will be put to work and will need to surmise the quintessential way to mass-produce the new company product.
In other words, they will be responsible for identifying parts sources and will also need to create sound strategies in order to not only meet all of their production objectives but also buy a sufficient amount of stock to meet their production goals.
The design team will also need to confirm how to test their intellectual property for optimal functionality before they can complete the final schematics of the new product. Here, it is important to remember that each design process phase emerges from its prior step. In fact, business analysts will be responsible for continuing to gauge the evolving needs of their clients in order to predict how their new IP can meet their needs.
As for the marketing department, their role is to help communicate the features of the new product to the intended consumer base while the business department will be responsible for identifying any and all opportunities for product monetization.
It should also be noted that all of the aforementioned activity will take place as the components procurement plan, final design refinements and schematics, test procedures, and product assembly directives move the product ever-closer to the commencement of its final production run.
Furthermore, the vast majority of companies in the electronics manufacturing industry will partner with a contract manufacturer during the early product life cycle of a new IP.
In fact, it is highly recommended that you work closely with the manufacturing enterprise that will fabricate your product, as consulting will allow you to detect any viable issues during the early stages, which will save you time and money in the long-term.
Then, once the contract manufacturers activate the switch and commence the first production run, they will be able to eliminate any serious glitches that can wreak havoc during the manufacturing process.
Why New Product Development is Essential
New product development serves as the driving force or impetus of most companies and is essential to the organic growth of an institution. Fierce global competitors and a fervent need from consumers for the latest and greatest tech should galvanize companies to go above and beyond the call of duty to develop innovative products in order to meet the needs of an increasingly demanding consumer base.
Hence, new product development is an absolute must due to newfound competition, the ever-changing needs of consumers, newfound technological advancements in the marketplace, as well as opportunities for development and growth.
Your enterprise can also use superfluous capacity in smart ways via new product development, and also risk diversification via new product development. What's more, new product development may also serve as an ideal strategy to help bolster the reputation of your company, and boost brand awareness in the process.
Finally, it is important to note that only one in seven product ideas will actualize into an actual successful product, and that launched products have a failure rate of between 25% and 45%, so the new product introduction process is paramount.
If you would like to learn more about the importance of the new product introduction process, call Circuits Central at (416) 285-5550 or contact us here.